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Iowa Racing and Gaming Commission Minutes January 10, 2008

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Iowa Racing and Gaming Commission Minutes January 10, 2008 IOWA RACING AND GAMING COMMISSION MINUTES JANUARY 10, 2008 The Iowa Racing and Gaming Commission (IRGC) met at Stoney Creek Inn & Conference Center, 5291 Stoney Creek Court, Johnston, Iowa, on Thursday, January 10, 2008. Commission members present were Kate Cutler, Chair; Gerry Bair, Vice Chair, and members Diane Hamilton, Greg Seyfer and Toni Urban. Chair Cutler called the meeting to order and requested a motion regarding the agenda. Jack Ketterer, IRGC Administrator, advised that Item 7 – Review of Iowa Code Section 99F.6(4)a – would be moved up on the agenda and become Item 4, with the agenda being renumbered accordingly. Commissioner Bair moved to approve the agenda as amended. Commissioner Urban seconded the motion, which carried unanimously. Chair Cutler moved to approval of the minutes. Commissioner Seyfer moved to approve the minutes of the November 8, 2007 meeting and December 11, 2007 telephonic meeting as submitted. Commissioner Bair seconded the motion, which carried unanimously. Chair Cutler called on Mr. Ketterer for announcements. Mr. Ketterer recognized thoroughbred owner Maggi Moss for her nomination for an Eclipse Award as one of the outstanding thoroughbred owners in the nation, competing against international figures. He noted there are three finalists with the decision being made the end of January or early February. Mr. Ketterer moved to the upcoming meetings: • February – No Meeting • March 6, 2008 Commission Meeting – Stoney Creek Inn, Johnston, IA • April 17, 2008 Commission Meeting – Diamond Jo Worth, Northwood, IA • June 5, 2008 Commission Meeting – Wild Rose Emmetsburg, Emmetsburg, IA The March meeting will be the renewal of the gambling boat and gambling structure licenses. There will also be a discussion by Commission members on additional licenses in the state. This issue was addressed last March, at which time Commission members expressed a desire to wait until next year after Waterloo had been open a few months prior to addressing the issue again. IRGC Commission Minutes January 10, 2008 Page 2 Chair Cutler moved to the review of Iowa Code Section 99F.6(4)a –Simultaneous Submissions – by Jeff Peterzalek, Assistant Attorney General. Mr. Ketterer stated that he sought the review, and discussed this matter with Mr. Peterzalek, in an effort to enable the quarter horse and standard bred organizations and Prairie Meadows Racetrack & Casino (PMR&C) to move ahead with the three-year agreements that they negotiated last fall. The joint submission process has seemed difficult for all the parties to accomplish, and has not been accomplished since the law was passed. He noted that Commissioner Seyfer raised the issue of the Declaratory Ruling Order that the Commission issued in August 2006. At that time, the Commission considered several interpretations as the language is somewhat ambiguous, and lends itself to several interpretations. After much deliberation, the Commission settled on all agreements being submitted jointly and included with the license renewal and application for race dates for any of them to be considered. That has never occurred. Mr. Ketterer advised that he and Mr. Peterzalek then sought an answer to Commissioner Seyfer’s question as to the impact of the Declaratory Order Ruling and its effect on any future action or interpretation by the Commission. He stated that Mr. Peterzalek would address that issue. Mr. Peterzalek echoed Mr. Ketterer’s comment that the Commission has previously entered a Declaratory Order Ruling interpreting the specific statute dealing with the “jointly submitted” language. He concurred that the language is somewhat ambiguous and does lend itself to more than one potential interpretation. Mr. Peterzalek stated that it is the Commission’s duty to interpret the statute in accordance with the law and/or facts presented to them, which was done in this case. The Commission concluded, based upon the facts, statutory authority, and the Commission’s analysis, that ““jointly submitted” means all agreements related to purses with horse groups identified in Prairie Meadows’ application for race dates must be submitted together.” Mr. Peterzalek noted that as that verbiage was included in a Declaratory Order Ruling, the legal authority would support the position that the Declaratory Order is binding on the Commission absent any change in facts, law, or circumstances. He noted that one of the authorities provided is that the reason for a Declaratory Order is to provide advice and binding guidance, not only to the public, but to the Commission and future Commissions on issues that may be important to participants in the area being regulated. Mr. Peterzalek stated it was his recommendation that absent any change in the law, circumstances or facts that the Declaratory Order Ruling entered in August of 2006 would and should still be followed by the Commission with respect to the interpretation of that specific Code Section. Mr. Ketterer stated that based on Mr. Peterzalek’s interpretation, there can be no change in the status quo, meaning that later on the agenda the Commission can not approve the purse agreements between PMR&C and the quarter horse and standard bred organizations as there is no agreement with the thoroughbreds in light of the fact that PMR&C applied for and received racing dates for thoroughbreds. He noted that race IRGC Commission Minutes January 10, 2008 Page 3 dates and purses for 2008 were set by the Commission in November. All three horsemens’ groups can continue to negotiate agreements for 2008 on matters of mutual interest other than purses and race dates. The quarter horse and harness organizations and PMR&C can submit the language from their three-year agreements and submit them in September with PMR&C’s 2009 Race Date application for 2009 and 2010 if they choose. The thoroughbreds and PMR&C will need to reach an agreement sometime before September and submit that agreement for any of the agreements to be considered by the Commission, assuming PMR&C applies for race dates for all three types of racing as they have done the past several years. Mr. Ketterer indicated this was an attempt to facilitate or move forward with the agreements that have been submitted, but it did not work out as hoped. He asked for an update with regard to negotiations with the thoroughbred group later in the agenda. Commissioner Bair asked what would occur if the Commission looked back and determined they erred in how they ruled in the Declaratory Order Ruling. He wondered if it is incumbent upon the Commission to review the Declaratory Ruling and, with public input, take another look at the issue. Mr. Peterzalek indicated there are a couple of different mechanisms in place for reviewing the Declaratory Order, including the consideration of another Declaratory Order. He stated that a Declaratory Order Ruling issued by the Commission essentially has the same effect as a final ruling in a contested case proceeding, and would be subject to judicial review. He reiterated that the only reason to review or vacate the Declaratory Order Ruling would be a change in the law, facts, or circumstances. Someone who challenged such a new Declaratory Order may have some basis for their challenge. Hearing no further comments or questions for Mr. Ketterer or Mr. Peterzalek, Chair Cutler moved to the Rules being submitted for final adoption. Mr. Ketterer noted these rules were submitted under Notice of Intended Action at the October Commission meeting; and that there was no public input at the public hearing. In lieu of reviewing all of the proposed rules, Mr. Ketterer called for any questions. As there were none, he recommended that the proposed rules be approved for final adoption. Commissioner Bair requested that Mr. Ketterer give a brief overview of the rule making process. Mr. Ketterer did so. He noted that the Commission’s process provides three opportunities for public input on the proposed rules. Commissioner Bair noted that the rule making process has been in place for thirty years. Hearing no comments or questions concerning the rules, Chair Cutler requested a motion. Commissioner Bair moved to approve the rules for final adoption. Commissioner Urban seconded the motion, which carried unanimously. (See Order No. 08-01) IRGC Commission Minutes January 10, 2008 Page 4 Chair Cutler moved to the contract approval portion of the agenda and called on Isle of Capri Bettendorf (IOCB). Barron Fuller, General Manager at IOC Marquette, presented a contract with Sedona Staffing for temporary staffing services on behalf of Bettendorf. Hearing no comments or questions concerning the contract, Chair Cutler requested a motion. Commissioner Urban moved to approve the contract as submitted by IOCB. Commissioner Seyfer seconded the motion, which carried unanimously. (See Order No. 08-02) Chair Cutler called on Argosy Casino. Kees Eder, General Manager, presented the following contracts for Commission approval: • PowerTech – Automatic Switch – Power Source Upgrade • Alter & Alvarez – Legal Services Commissioner Bair asked about the legal services contract with a firm in St. Louis, Missouri. Mr. Eder advised the firm is retained by corporate, and has provided services for approximately ten years. Commissioner Bair asked if any services are performed by local attorneys. Mr. Eder answered in the negative. Hearing no further comments or questions, Chair Cutler requested a motion. Commissioner Hamilton moved to approve the contracts as submitted by Argosy. Commissioner Seyfer seconded the motion, which carried unanimously. (See Order No. 08-03) Chair Cutler called on Harrah’s. Jeannie Magdefrau, Vice President of Finance, presented a contract with Mid-America Center for a luxury lease suite agreement. Hearing no comments or questions regarding the contract, Chair Cutler requested a motion. Commissioner Urban moved to approve the contract as submitted by Harrah’s. Commissioner Hamilton seconded the motion, which carried unanimously. (See Order No. 08-04) Chair Cutler called on the isle casino & hotel at Waterloo (the isle).
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